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Shiba Inu Set for Accumulation Despite SHIB Price Decline

2 mins
Updated by Daria Krasnova
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In Brief

  • Shiba Inu’s price has been in a consistent downtrend since the beginning of March.
  • As a result, investors have stepped away, given participation is at a six-month low.
  • The MVRV ratio is currently in the opportunity zone, signaling accumulation.
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Shiba Inu (SHIB) price is facing the consequences of the ongoing downtrend, which has pushed its investors away.

Nevertheless, there could be a turnaround since the low prices have created the perfect atmosphere for accumulation.

Shiba Inu Investors Need to Be Revived

Since the beginning of March, Shiba Inu has been caught in an ongoing downtrend that has steadily eroded investor confidence. This persistent decline in value has led to a noticeable shift in market behavior, with many investors choosing to distance themselves from the asset.

As the downtrend continues, investor participation in Shiba Inu has significantly decreased. The prolonged bearish sentiment has made it less appealing for both new and existing investors to engage with the cryptocurrency. This withdrawal is reflected in the reduced trading volumes and lower market activity surrounding Shiba Inu.

Read more: How To Buy Shiba Inu (SHIB) and Everything You Need To Know

Shiba Inu Active Addresses.
Shiba Inu Active Addresses. Source: Santiment

As a result, investor participation in Shiba Inu has reached its lowest point in six months. However, the low prices also present an opportunity for SHIB investors, as the Market Value to Realized Value (MVRV) ratio suggests. The MVRV ratio assesses investor profit and loss. 

Currently, Shiba Inu’s 30-day MVRV stands at -8%, indicating losses and possible buying pressure. Historically, SHIB MVRV between -8% and -18% usually signals the start of recoveries and rallies, marking it as an accumulation opportunity zone.

Shiba Inu MVRV Ratio.
Shiba Inu MVRV Ratio. Source: Santiment

SHIB Price Prediction: Invalidating the Downtrend

Shiba Inu’s price at $0.00001345 is currently targeting a breach of the five-month downtrend. The meme coin has managed to breach this line only three times since the beginning of March.

The potential accumulation could bring renewed bullish momentum to SHIB, potentially pushing the price toward $0.00001473. If this level is flipped into support, Shiba Inu might extend its rally

Read more: Shiba Inu (SHIB) Price Prediction 2024/2025/2030

Shiba Inu Price Analysis.
Shiba Inu Price Analysis. Source: TradingView

However, if the meme coin fails to breach this level, consolidation between $0.00001473 and $0.00001281 may continue. This scenario could invalidate the bullish outlook entirely, reinforcing the bearish sentiment.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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